Revealed that 27.66270285 BTC were recovered. Following the hack, an investigation was launched by Bitfinex along with assistance from enforcement agencies internationally, in order to trace the 119,756 BTC lost by the exchange.
As per the recovery strategy outlined after the incident, the platform generalized the losses from every user account and credited BFX, USD-pegged token in an equivalent amount to the damages suffered by each user. Further, the exchange gave its user an option to either redeem the BFX token for cash or to exchange it for the shares of iFinex Inc., the company that owns and operates Bitfinex.
It gives us great pleasure to report we have received bitcoins from the U.S. government that were proceeds of the 2016 security breach. In line with our original recovery plan, this is being converted to USD and paid to RRT holders.
Find out more here – https://t.co/UwCMNERes9
— Bitfinex (@bitfinex) February 25, 2019
Giancarlo Devasini, the CFO at Bitfinex expressed his gratitude to the U.S. government for their efforts, he stated in the official statement:
We will continue to assist law enforcement with their inquiries, and also once again extend an open invitation to the hackers, or anyone harbouring information pertaining to the breach, to make contact in whichever medium they feel most secure with, to finally resolve the situation in a mutually beneficial manner.
The cryptocurrency eco-system is plagued with security breaches of crypto exchanges and the subsequent losses incurred by the users. The inability of the technology to reverse transactions is its key weakness when compared to the traditional banking system.
Even after a decade of bitcoin’s launch, such issues keep arising. For instance, Crypto exchange Cryptopia lost over $3 million due to a hack and just recently the Canadian cryptocurrency exchange, QuadrigaCX got locked out of its funds, due to the sudden demise of its CEO.
Even with the recovered BTC from the Bitfinex hack only amounts to 0.023% of the total lost funds, a recovery under such scenarios paves the path for blockchain technology to illustrate its ability to correct malicious human activities.
Read more: Accenture To Employ A New Blockchain To Encourage Circular Supply Chain
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